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May 12, 2025

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Amid ever-increasing uncertainties on the global front and similarly rising geopolitical tensions between India and Pakistan, the Indian equity markets demonstrated strong resilience. They consolidated before ending the week on just a modestly negative note. The trading range remained modest; the Nifty oscillated in a 590-point range. While the markets defended their key support levels, the volatility surged. The volatility barometer, the India Vix, spiked 18.49% to 21.63 on a weekly basis.. The headline index finally closed with a net weekly loss of 338.70 points (-1.39%).

A few important things to note from a technical perspective. The 200-DMA is at 24044; the 50-week MA is at 23983. This makes the zone of 23950-24050 a very important support zone for the Nifty. So long as the Index is able to defend this zone, it will continue consolidating in a defined range. Incremental weakness would creep in only if the 23900 level is violated decisively. On the higher side, as evident from the charts, the markets have continued to resist the rising trendline resistance. From now on, the Nift’s behavior vis-à-vis the zone of 23950-24050 would be crucially important to watch; the Index’s ability to defend or not defend this zone will dictate the trend over the coming weeks.

The levels of 24350 and 24600 are expected to act as probable resistance points in the coming week. The supports are at 23900 and 23630.

The weekly RSI is 54.36; it stays neutral and does not diverge against the price. The weekly MACD is bullish and stays above its signal line. A bearish engulfing candle has emerged. Its emergence near a pattern resistance adds credibility to the resistance placed near 24500-24600.

The pattern analysis of both daily and weekly charts shows that the Nifty has traded quite on the expected lines and within the analyzed range. It has continued resisting the rising trendline resistance near 24500-24600; it has so far defended the key that is created between the 200-DMA and the 50-week MA. The markets would weaken only if they violate the crucial 23900 level; so long as this point stays defended, we can expect the markets to consolidate in a defined range.

Based on the overall technical structure, it is likely that the markets will not see any immediate upward trend. While if the markets end up breaching the 23900 level remains to be seen, it is doubtful that they will initiate any sustainable trending upmove and move past the 24500 levels soon. The hedging activity and the cost of hedging have increased; this is evident from Vix, which has significantly risen over the past few days. While the Nifty has defended the key support levels so far, it remains in a technically challenging environment. It is strongly recommended that the market participants adopt a defensive approach by focusing on the low beta stocks and the stocks with improving relative strength. Staying low on leveraged positions, a continued cautious outlook is advised for the coming week.


Sector Analysis for the coming week

In our look at Relative Rotation Graphs®, we compared various sectors against the CNX500 (NIFTY 500 Index), representing over 95% of the free-float market cap of all the listed stocks. 

Relative Rotation Graphs (RRG) show that the Nifty PSE Index has rolled inside the leading quadrant. Infrastructure, Nifty Bank, PSU Bank, FMCG, Consumption, Commodities, and the Financial Services Indices are also inside the leading quadrant. These groups are likely to outperform the broader Nifty 500 Index relatively.

The Nifty Metal Index has rolled inside the weakening quadrant. This may cause the sector to slow down and give up on its relative performance. The Services Sector index also remains in this quadrant.

While the Nifty IT Index continues to languish in the lagging quadrant, the Auto and the Realty Indices are sharply improving their relative momentum against the broader markets while staying inside this quadrant.

The Nifty Midcap 100 index has rolled inside the improving quadrant; may see its relative performance bettering over the coming days. The Media and the Energy Indices are also inside this quadrant, and may continue seeing improvement in their relative performance against the broader markets.


Important Note: RRG charts show the relative strength and momentum of a group of stocks. In the above Chart, they show relative performance against NIFTY500 Index (Broader Markets) and should not be used directly as buy or sell signals.  


Milan Vaishnav, CMT, MSTA

Consulting Technical Analyst

www.EquityResearch.asia | www.ChartWizard.ae

A massive fire that destroyed a large shopping center in Warsaw last year was the result of arson ordered by Russian intelligence services, Polish officials said Sunday on the eve of the one-year anniversary of the blaze.

The fire broke out May 12, 2024, in the Marywilska 44 shopping that housed some 1,400 shops and service points. Many of the vendors were from Vietnam, and it inflicted tragedy on many in Warsaw’s Vietnamese community.

“We now know for certain that the massive fire on Marywilska was the result of arson commissioned by Russian services,” Prime Minister Donald Tusk said on X. “The actions were coordinated by a person residing in Russia. Some of the perpetrators are already in custody, while the rest have been identified and are being sought. We will catch them all!”

In a joint statement, Justice Minister Adam Bodnar and Interior Minister Tomasz Siemoniak said the May 12, 2024, blaze gutted 1,400 shops and service points. Authorities have been investigating the incident for a year, with support from police and the Internal Security Agency.

Officials said the arson was part of a coordinated sabotage campaign directed from Russia. Some perpetrators are in custody, while others have been identified and are being sought. Polish authorities are also cooperating with Lithuania, where some suspects allegedly carried out related activities.

The investigation involved 121 days of site inspections and the work of 55 prosecutors and 100 police officers. More than 70 witnesses and over 500 victims were interviewed.

“We are determined to hold accountable those responsible for these disgraceful acts of sabotage,” the ministers said.

The announcement comes amid rising concerns in Europe over Russian attempts to destabilize the region through covert operations.

Russia has in the past denied allegations that it is orchestrating arson and sabotage operations across Europe.

This post appeared first on cnn.com

The Israeli military issued an evacuation warning for three ports in Yemen on Sunday night after vowing to “defend itself by itself” following a ceasefire deal between the US and the Houthis that excluded Israel.

The warning, posted on social media by Israel Defense Forces (IDF) Arabic media spokesperson Avichay Adraee, warned people to evacuate the ports of Ras Isa, Hodeidah, and Salif.

The anticipated airstrikes come two days after Israel intercepted a missile fired from Yemen, according to the IDF.

That missile was the first since President Donald Trump announced a ceasefire deal between the US and the Iran-backed rebel group last week.

Despite the deal, the Houthis said they would continue to attack Israel in solidarity with the Palestinian population of Gaza.

Blindsided by the deal, Israel vowed it would strike the Houthis alone if necessary.

“Israel must be able to defend itself by itself against any threat and any enemy,” Defense Minister Israel Katz said in a statement last week. “This has been true in the face of many past challenges, and it will remain true in the future.”

This marks the second time within a week that Israel has issued an evacuation warning for Yemen.

Last Tuesday, the military issued a warning for Yemen’s international airport in the capital of Sana’a before carrying out strikes that it said “fully” disabled the facility.

This post appeared first on cnn.com

The governor of the Mexican state of Baja California, which borders the US, said on social media Sunday that the United States withdrew tourist visas from her and her husband.

Marina del Pilar Ávila, from the ruling Morena party, did not say why her visa was withdrawn.

A spokesperson for the US Embassy said that visa records are confidential and that the details of individual cases cannot be discussed.

Baja California borders California and day-to-day commercial ties between the two states run deep.

”I fully trust that the situation will be satisfactorily clarified for both of us,” Ávila said on X.

Her husband, Carlos Torres Torres, who is an active member of Morena, said his “conscience is clear,” in a statement on Facebook on Saturday.

“This proceeding does not represent a formal accusation, investigation or indictment by any authority in Mexico or the United States,” he added.

This post appeared first on cnn.com

I met the man who would become Pope Leo XIV in October 2023. We were standing outside the Vatican’s Synod Hall, and from my short conversation with Cardinal Robert Prevost, I could tell he was a good listener, thoughtful and had a certain presence about him.

Our conversation took place on the sidelines of a major Vatican assembly focused on church reform efforts. It was part of a multi-year process begun by the late Pope Francis – the synod – which he extended from his hospital bed as one of his final acts in power.

Inside the large gathering hall in 2023, and again in 2024, participants like Prevost sat at roundtables where everyone was given a chance to speak for the same allotted length. The future pope, like other cardinals and bishops, engaged with people from across the world, notably including women. Synod gatherings in the Vatican had not taken place in that style before and, for the first time, included female voters who had their say on agreeing a final document.

Just half a year later, Prevost – now Pope Leo XIV – is no longer one of the many participants at the table. He is at the helm of the church and set to continue steering this reform process in the same direction.

When Pope Leo spoke on the balcony of St. Peter’s Basilica just moments after his election, he signaled he would seek “to walk together with you as a united church searching all together for peace and justice, working together as women and men.”

Leo is likely to continue what Francis started but with his own low-key yet determined style. His election, at the age of 69, shows the cardinals want a pope to institutionalize those reforms in a papacy that could last several decades.

Central among them are questions about the role of women, the exercise of power in the church hierarchy and the move to a more missionary church that gets out of its comfort zone.

Potential counterweight to Trumpism

Before the white smoke went up, the best-known American in the world was President Donald Trump. Pope Leo XIV, the first American pope, has changed that.

By electing Prevost, the cardinals have ensured the papacy is a prophetic voice on the world stage that could serve as a counterweight to Trumpism.

While Pope Leo is a unifier who does not appear looking to pick fights, his focus on bridge-building, dialogue and support for migrants, stands in contrast to the Trump administration.

In his first speech to the cardinals following his election, Pope Leo pledged his “complete commitment” to the teachings of the Second Vatican Council, the 1962 to 1965 gathering of bishops that provided the blueprint fort contemporary the contemporary church.

He insisted that this meant “loving care for the least and the rejected” and “courageous and trusting dialogue” with the contemporary world with the contemporary world in its various components and realities” including, tackling the challenge to human dignity that Artificial Intelligence presents.

The Second Vatican Council sought to emphasize the church as a voice for the marginalized – a “prophetic voice” – and was particularly embraced in Central and Latin America, where the future Pope Leo served for decades.

Banks said the new pontiff is “very concerned with social issues and the marginalized,” someone who is close to those on the “peripheries.” The Augustinian order – which pope Leo was elected to lead for two terms – is focused on community building.

Posts made on an X account under the new pope’s name reposted articles and posts critical of the Trump administration’s immigration policy, although those who know Pope Leo say he is not naturally confrontational.

“I don’t think he’s one to pick fights with people, but he’s not one to back down if the cause is just,” according to Cardinal Joseph Tobin of Newark, New Jersey, who has known Pope Leo for some time as his friend “Bob” Prevost.

A humble leader

When it comes to the hotly disputed topics inside the church – same-sex blessings, the ordination of women – the new pope is going to adopt a posture, rather than make bold changes.

In 2012, Prevost gave a speech criticizing the “sympathy for anti-Christian lifestyle choices” found in the mass media including same-sex couples and “their adopted children,” although 11 years later he said his position had developed “in the sense of the need for the church to open and to be welcoming.”

When he was Bishop of Chiclayo, Peru, Becquart says he ensured women were in leadership positions in his diocese.

Like Francis, he is unlikely to try and change church doctrine but will take a firm stance on topics such as migration, peace, the environment.

“He’s not a man who’s going to tell you what he’s against, he’s going to tell you what he’s for, that’s to me the crucial thing about him,” said Brother Mark O’Connor, a Catholic journalist who runs communications for the Diocese of Parramatta in Australia. O’Connor knows Pope Leo reasonably well.

“He’s the opposite of a culture warrior,” he said. “I don’t think he believes fighting about doctrine or even changing doctrine and talking about dogmatic issues is the way forward.”

As the church moves into a new era, one topic he must address is clerical sexual abuse.

Given his time as a former leader of a religious order and prefect of the Vatican office for bishops he will have had experience dealing with abuse cases. One survivor group has criticized his handling of some cases, while the leader of Peru’s bishops’ conference praised Prevost’s ministry to abuse survivors.

Leo has a doctorate in the church’s canon law, which equips him for the task of ensuring existing church laws are applied to investigate cases and hold leaders accountable.

The new pope is also credited with playing a crucial role in the suppression of the Sodalitium Christianae Vitae, a powerful Peruvian group plagued by allegations of abuse.

Traditional wisdom said it was not possible to have a pope from the United States.

Yet in Pope Leo XIV, church leaders chose someone who has spent decades working in Latin America and has global experience – often referred to as a citizen of the world.

At a time of increasing divisions, wars and conflicts, the 2025 conclave has opened an extraordinary new page for the church with the choice of Leo, a bridge-builder and quietly prophetic pope.

This post appeared first on cnn.com

Victory has a thousand fathers, as they say, but defeat is an orphan.

And so it goes after the brief but bruising conflict between nuclear rivals India and Pakistan with both sides loudly talking up their successes while quietly down-playing losses.

On India’s frantic television news channels, minutes after a US-brokered ceasefire came into force, the headline “Pakistan Surrenders” was splashed across the screens.

India’s military action against Pakistan, sparked by the killing of tourists in India-administered Kashmir last month, sent a bold message to terrorists, India’s defense minister, Rajnath Singh, said later.

Meanwhile, in Pakistan, crowds gathered in the streets of the capital to celebrate what Prime Minister Shehbaz Sharif described as “military history” achieved by “our brave army in a spectacular fashion.”

“In a few hours our jets silenced India’s guns in a way that history will not soon forget,” Sharif said, while an effigy of his Indian counterpart burned outside.

But this was an eruption of violence between two nuclear-armed neighbors in which both sides delivered and suffered heavy blows.

Pakistan has trumpeted successes in the skies, claiming its pilots shot down five Indian fighter jets in aerial battles – including three advanced French-made Rafales – in what would be a stinging humiliation for the Indian air force.

But Indian officials are still refusing to acknowledge even a single aircraft loss.

Meanwhile, India has released new satellite images showing serious damage to air strips and radar stations at what Indian defense officials say are multiple Pakistani military bases crippled by massive Indian airstrikes.

In other words, political and military leaders in India and Pakistan can spin it how they like, but there is no clear winner in this conflict.

There’s even a struggle to take credit for what were clearly US-brokered negotiations that led to the ceasefire, announced almost out of the blue by US President Donald Trump on his Truth Social platform.

Amid a rapidly deteriorating security situation at the weekend, which threatened to spin out of control, US Secretary of State Marco Rubio said he and Vice President JD Vance called political and military leaders on both sides urging them to hold back.

Pakistani officials expressed gratitude for the intervention. But Indian leaders are playing down any US role, saying the truce was worked out between India and Pakistan directly.

The reason is likely to be driven by national pride, with Indian officials loathe to admit a truce was imposed on them, or even brokered, by the United States.

India also has a long-standing policy of refusing to allow foreign mediation when it comes to the status of Muslim-majority Kashmir – a disputed region claimed by both India and Pakistan in its entirety – which has been at the center of the latest conflict with Pakistan and which India regards as a strictly internal matter.

Nevertheless, perhaps buoyed by his quick ceasefire win, President Trump has offered to help the two countries find a lasting solution “after a thousand years” concerning Kashmir. Inevitably, Pakistan has welcomed the idea, while in India it has fallen on deaf ears.

The offer is a stark reminder, though, that the US-brokered truce is little more than a quick fix, a band aid that is unlikely to remotely address the fundamental grievances fueling what is actually a decades long dispute, over the status of Kashmir.

And if you think the Indian and Pakistani claims of victory both ring a bit hollow now, just wait until the simmering Kashmir dispute, inevitably, boils over once again.

This post appeared first on cnn.com